NY Business Journal reports a new private label credit card program by Comenity Bank, with Appliances Connection.
- The Brooklyn-based company is partnering with Alliance Data Systems Corp. (NYSE: ADS) on a private label credit card service that will include a “SelectCheckout SM capability” that allows cardmembers to redeem rewards.
- Sales for Appliances Connection topped $155 million in 2016, 18 percent over the previous year, and ran 48 percent higher in 2017, thanks to repeat customers, Fouerti has said).
Although this is not a particularly large retailer, we think the business strategy of heading towards smaller, internet businesses is sound. Engaging the customer at the POS with rewards redemption works well in digital and face-to-face commerce. And, in a world of so many weak startups, isn’t it grand to see revenue advance from $120 million to about $250 million in three years.
- “The customer experience is at the core of everything we do at Appliances Connection,” said Appliances Connection CEO Albert Fouerti in a prepared statement.
- “Our search for a credit card partner that understands and can help deliver the unmatched brand experience we’ve created led us to Alliance Data.”
Mercator currently has a substantial piece of research in editing that covers the Private Label Credit Card market; this will be available to subscribers in about two weeks, so the timing of this new deal is perfect.
This looks like a winner, with plenty of learning opportunities.
Overview by Brian Riley, Director, Credit Advisory Service at Mercator Advisory Group
